Coir Udyami Yojana

The Coir Udyami Yojana is a credit-linked subsidy programme run by the Ministry of Micro, Small and Medium Enterprises (MSME) and delivered through the Coir Board. It seeks to encourage entrepreneurship and generate jobs in the coir sector, with a focus on rural regions. The scheme supports the creation of new coir manufacturing units by offering financial assistance through subsidies tied to bank credit.

This initiative helps meet the capital needs of individuals and organisations entering coir fibre, yarn, and product manufacturing, supporting steady growth in the industry. Through these incentives, it aims to modernise coir production, strengthen market competitiveness, and improve incomes for artisans and entrepreneurs in this traditional field. Special attention is given to SC/ST communities, women, and young people.

The application procedure is outlined below.

1. Complete the prescribed application form, as detailed in Part-B of the guidelines, and attach all necessary documents.
2. Submit the application to the nearest Field Office of the Coir Board.
3. Attend a compulsory 5-day Entrepreneurship Development Programme (EDP). This must be completed either before or after submitting the application, but it is a prerequisite for the bank recommendation.
4. The application undergoes scrutiny and is then referred to the Regional Level Selection Committee for assessment.
5. Following the committee's approval, the application is sent to the bank.
6. If the bank sanctions the loan, the applicant is required to pay their 5% beneficiary contribution within 30 days.
7. Subsequently, the Coir Board deposits the 40% subsidy amount with the bank.
8. The bank then releases the term loan within 30 days of receiving the subsidy.
9. The project must be finished within a 6-month timeframe.
10. A physical inspection is carried out by the Coir Board and the bank prior to the final adjustment of the subsidy.

Applications are initially reviewed by the Coir Board's Field Office. Those meeting the eligibility criteria are subsequently referred to a Regional Level Selection Committee, which assesses the proposals and, if approved, recommends them to financial institutions for credit linkage. The bank's final approval and due diligence determine the ultimate selection and sanction of the loan.